ABB has won an order worth $39m from
the Saudi Electricity Company (SEC), to improve the efficiency of power transmission
and distribution in the Kingdom’s Eastern Province
ABB will design, engineer, supply,
install and commission equipment including 13.8 kV (kilovolt) capacitor banks
for the existing substation infrastructure in 40 locations, the power and
automation technology group said in a statement on Tuesday.
The deal will help significantly
reduce electricity losses and improve the stability and quality of power supply
in Saudi Arabia, ABB said.
The fast track project is scheduled
for completion by mid 2011.
“Capacitor banks will improve the
efficiency and reliability of the power network and support the region’s
growing need for power,” Peter Leupp, head of ABB’s Power Systems division said.
A capacitor is a multi-purpose
device that can store an electrical charge in the form of an electric field. It
is used to help stabilise power systems and make them more efficient. Capacitor
banks contain a number of capacitors connected in parallel.
Substations are key installations in
the power grid that facilitate the efficient transmission and distribution of
electricity. They include equipment that protects and controls the flow of
controlled Saudi Electricity Co (SEC) said on December 13 that it finalised a
murabaha Islamic financing worth $1.3bn with four local banks to finance
projects inside the kingdom.
world's biggest oil producer has seen a rise in population to over 27m and is
seeing local demand for electricity rise at about 8 percent annually.
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